d) Lesser investment in inventory and work in progresse) Optimum use of floor spacef) Shorter processing time or quicker outputg) Less congestion of work in the processh) Simple and effective inspection of work and simplified production controli) Lower cost of manufacturing per unit
Disadvantages: Product layout suffers from following drawbacks:
a. High initial capital investment in special purpose machine b. Heavy overhead chargesc. Breakdown of one machine will hamper the whole production processd. Lesser flexibility as specially laid out for particular product.
Suitability: Product layout is useful under following conditions:
1) Mass production of standardized products2) Simple and repetitive manufacturing process3) Operation time for different process is more or less equal4) Reasonably stable demand for the product5) Continuous supply of materials
machines of a similar type are arranged together at one place.
The processor functional layout is followed from historical period.
It evolved from the handicraft method of production
The work has to be allocated to each department in such a way that no machines arehosen to do as many different job as possible
The work, which has to be done, is allocated to the machines according toLoading schedules with the object of ensuring that each machine is fully loaded
suitable for job order production involving non-repetitive processes and customer specifications and non-standardized products